Roche's Fourth Quarter Was Ugly, But The Long-Term Quality Remains Sound

Well, that was pretty terrible.

Roche’s (OTCQX:RHHBF) (OTCQX:RHHBY) posted a surprisingly awful fourth quarter, as COVID-19 and biosimilars impacted the business more than the sell-side expected, and more than management had let on at a major sell-side conference in January. What’s more, management’s guidance for 2021 was not all that positive relative to expectations, and the company could definitely use a few wins in the clinic to help shift sentiment.

Roche shares have noticeably lagged the broader pharma space since my last update, and that was true before the weak earnings and guidance, and the shares have likewise underperformed over the last year. I don’t believe the company is in anyway “broken”, and I think it remains a name to consider on pullbacks or periods of lagging performance.

 

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Roche's Fourth Quarter Was Ugly, But The Long-Term Quality Remains Sound